The leader of a business association criticized the cancellation of the debt of pension and healthcare services of two municipalities.

Mexicali Employer Confederation President Octavio Sandoval recalled that last week Governor Jaime Bonilla called for a meeting to discuss the cancellation that was approved this week.

According to Sandoval the Issstecali board is not legally authorized to cancel the 2.3 billion peso debt of the municipalities of Tecate and Ensenada.

The business leader considered that the $119.1 million debt cancellation will impact healthcare services and pension payment to public employees, while affecting funds that are supposed to pay for infrastructure and public safety.

Sandoval said the state has pension liabilities that equal four times the state’s annual budget. The business leader proposed to divide pensions and healthcare services in two separate agencies.